Options update for July 21...ducks look calm on the surface...
but they're paddling like mad underwater. Don't be fooled by the Dow being up 16 points today--it is an ugly market. Two-to-one decliners, NASDAQ down 12, TXO down a fat 6 points, T300 down 91. Greenspan has a habit of saying elliptical things (hmmm, does he also have an MBA?), so look for the market to seize upon anything he might say as an excuse to open the scuttle-valves.
BCE: Bell's down almost a deuce in the last 2 days--Nortel sewered today as everyone mounts the earnings watch (due before Tuesday opening). The lower Bell goes, the more the public wants to buy the Ag 42.5s and 45s. They're getting silly out of line. Some sharp clients have started with small buy-writes on them, but not much meat on the bone, even though they're way over-valued. (25*,25*)
ABX: Barrick gave back nearly half it's gain, while bullion only lost about a quarter of what it had rallied. Lots of fingers on the trigger to short it; makes me a little leery of climbing on board. Volatility eased a tad on Friday. (34,34)
N: Inco's stuck in like a 30c range, and I'm not going to bore anybody with it until it moves a buck. (27.5,26.5)
Unless my eyes deceived me, total option volume on Friday was over 55,000 contracts. Why can't the exchange give us what we need in terms of resources to keep this going and build on it instead of radical sugery which will IMHO kill the patient? I understand the total cost for an electronic book, which we could interface with our auto-rotation and MOST machines, and preserve an open-outcry auction, is only $100,000. Noooo, they have to go spend something like $3 million and come up with a system which will have every single drawback NASDAQ has, *and no improvement on the status quo ante*! I wish they could point to a system somewhere in the world with full automation and tell us that it is better than the CBOE or the Amex or the Philly or P-coast. They can't, because there is no better system in the world than an auction for fairness, disclosure, and liquidity.
Full stop.
Happy trading.
Porter
(BTW, if anyone wants a rudimentary discussion of an auction vs. a
"bulletin board" trading system, try:
techstocks.com )
If Dave S. can quote himself, so can I. |
